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Auto tariffs were the big take-away from this weekend’s affair amid President Donald Trump and Chinese leaders to abate their barter war. But don’t be misled. The absolute blackmail to American auto jobs isn’t Chinese tariffs on American-made cars. It’s China’s plan to flood the U.S. with bargain cars fabricated with low-paid labor.

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After the barter powwow, Trump admiral appear that China would bead or abolish its castigating 40% assessment on autos alien from the U.S. But don’t pop the albino cork. Removing Chinese tariffs on U.S. made-autos will do about annihilation for our autoworkers.

Truth is, alone 2% of Fords awash in China are fabricated here. The big three U.S. automakers will acquaint you “we body area we sell.” They’ve confused operations to China because the Asian behemothic is area the U.S. was in 1925 in agreement of car ownership, with affluence of first-time car buyers. GM makes added cars in China than here, and sells added in China. The company’s added Chinese than American.

Back in the U.S., the botheration advanced is the advancing beachcomber of bargain Chinese-made cars. It’s a echo of what Japan and South Korea did in the 1970s and 1980s. Their bargain cars dead bags of jobs in auto-producing states like Michigan, Indiana and Ohio. Now bristles Chinese auto companies plan to advertise in America aural two years. Chinese autoworkers accomplish about $11,000 a year.

No admiration Chinese negotiators say they appetite both abandon to atom all tariffs. It’s a trick. Fortunately, Trump doesn’t assume to be falling for it. He’s appointed a hard-liner, pro-tariff U.S. Barter Representative Robert Lighthizer to spearhead the Chinese negotiations. It’s a assurance Trump appreciates that auto tariffs are basic to staving off added disasters — such as the GM bulb closings appear aftermost week.

On Nov. 26, CEO Mary Barra blindsided the nation, advertisement that General Motors is shuttering four U.S. factories, including the Lordstown, Ohio, bulb that makes the Chevy Cruze, and the iconic Detroit-Hamtramck bulb that produces the Chevy Volt and added sedans. The closings will lay off 3,300 assembly workers and 15% of GM’s white-collar workforce. Barra’s absolution is that its sedans aren’t selling, and the closings are bare to “stay in advanced of a fast-changing market.” Investors agreed. GM banal soared.

Though longtime advisers can move to added GM plants, abounding workers will end up in low-paying jobs or unemployed. In towns like Hamtramck, food will be boarded up and rows of houses will be for sale.

In 2016, applicant Trump apprenticed to anticipate such disasters. Trumbull County, home of the Lordstown plant, went for Trump afterwards giving Barack Obama a 23-point allowance in 2012.

Hearing GM’s austere advertisement aftermost week, Trump anon alleged for auto tariffs. He acicular to the 25% assessment imposed on ablaze trucks back 1964, which has affirmed U.S. ascendancy of the auto and SUV bazaar anytime since. “If we did that with cars advancing in, abounding added cars would be congenital here,” he tweeted, “and GM would not be closing their plants in Ohio, Michigan & Maryland.”

Trump additionally bigger protections for U.S. auto jobs back he adjourned the barter alliance with Mexico and Canada, appear aftermost week. The pact, awaiting Congress’s approval, requires that at atomic 75% of a car’s amount — acceptation genitalia and activity — arise in North America for the car to be duty-free. That’s up from 62.5% beneath NAFTA.

It will force companies that accumulate in Mexico, like Nissan and Volkswagen, to use North American-made parts. To assure U.S. wages, about bisected of all the genitalia will accept to be fabricated by workers earning at atomic $16 an hour, a jab at Mexico, which currently pays about the everyman auto accomplishment in the world.

GM’s Barra is advancing to Washington this anniversary with mea culpas. But GM’s approaching as a aggregation is abundantly in China and added new adopted markets. Fortunately, Trump has U.S. autoworkers’ backs.


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